The board of directors of Gazelle Ltd has resolved to change the companys accounting policy for capitalising
Question:
The board of directors of Gazelle Ltd has resolved to change the company’s accounting policy for capitalising gains or losses on its cash flow hedges recognised in other comprehensive income. To date, such gains or losses were capitalised to hedged items, but the directors now believe that taking such gains or losses to profit or loss is a more appropriate treatment. Due to a recent computer virus, all data from the non-current asset register, including specific depreciation details from prior periods, has been destroyed.
Required
The board of directors has approached you for advice regarding the disclosures, if any, that are required for this change in accounting policy.
Step by Step Answer:
Financial Reporting
ISBN: 9780730396413
4th Edition
Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes